Archives tagged: Walmart

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Dollar General Looks Good Today. Will Tomorrow Be Different?

By Tim J. Smith, PhD March 26, 2018

From a business strategy standpoint, Dollar General has positioned themselves to avoid direct competition with Amazon and Walmart, having successfully demonstrated a way to deal with the duopoly’s increasing presence in the retail market.

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Strategic Movements: March 2018

By Tim J. Smith, PhD March 26, 2018

In his book Pricing: The Third Business Skill, EJ Bouter made the case for pricing to become its own department, right next to finance, marketing, sales, and operations in chapters 14-16.

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Strategic Movements: January 2018

By Tim J. Smith, PhD January 28, 2018

The future may not become a dystopian duopoly of just Amazon and Walmart. There will be competition, but which and who? In dirt one can find gems.

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Strategic Movements: December 2017

By Tim J. Smith, PhD December 22, 2017

The Federal Aviation Administration is contemplating an $8 increase on domestic round-trip ticketing fees.  In response, Delta Air Lines Inc. claims that for every $1 increase in facility charges, passenger demand declines by more than 1%. That would imply a primary demand elasticity of about three. Seems right. So, an $8 facilities charge increase would decrease flight travel by 8%.

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Strategic Movements: November 2017

By Tim J. Smith, PhD November 16, 2017

Apple and Qualcomm are in a feud. Issue: Qualcomm makes and holds patents over much of the modem chips that handle communications between wireless devices and cellular networks. Actions: Apple sued Qualcomm over market dominance, and Qualcomm responded by withholding software required to configure their next-gen chips.

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Is Retailing Becoming an Oligopoly?

By James T. Berger October 18, 2017

Certain retail industries such as groceries, cars, cellphones and airlines to name a few have always been oligopolies, but more and more additional retail product categories are leaving the world of pure competition, and entering the world of oligopoly.

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Strategic Movements: September 2017

By Tim J. Smith, PhD September 14, 2017

Wendy’s achieved another quarter of same store sales growth.  Was it their sassy social media campaign that reminds detractors of the existence of refrigerators?  Was it their new menu items?  Or was it the fast food chain’s competitive pricing? Of the three, I think it was their social media campaign that propelled otherwise strong product and pricing strategy to outperform.

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Rules of Retailing and Changing

By James T. Berger July 19, 2017

Prof. Haskett defines the “wheel of retailing” as the concept where retailers enter the market through low-price strategies to build market share. With the high market share, the retailer would shift its strategy from attracting new customers to increasing profit margins through higher pricing. In implementing the higher pricing strategy, the retailer opens spaced for a new lower price retailer to come into the market as the wheel turns.

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Who Will Survive the Retail Revolution?

By James T. Berger June 16, 2017

In The Future of Shopping, a 2011 article by Darrell Rigby—a partner in the Boston office of Bain & Company—sees retail today as part of a 50-year cycle. Rigby writes 150 years ago, the railroads promoted the growth of big cities and the rise of the department store. One hundred years ago, the automobile made possible the shopping center and 50 years ago, we saw the rise of the Big Box category killers.

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Should You Fight for Market Share?

By Kyle T. Westra May 15, 2017

Market share is not intrinsically valuable. In the world of business, good profit dollars are what has intrinsic value. Profit dollars, earned by serving customers, are the existential purpose of a firm. Anything else is merely instrumental.

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